Canadian, TN visa, filing US Resident, Withdrew RRSP's

[sdpuppies2883]

Im new to this forum. Quick rundown, I am a canadian citizen, have been in US since since spring 2009 on TN visa.

2009 taxes I paid canadian taxes and claimed still as a Canadian resident (filing in both the US 1040 NR and Canada and claiming tax credits in Canada)

2010 tax year I did not do a canadian tax return and made no Canadian income. I claimed as a canadian non-resident as I live and work in the US. I filed a 10 40. Do I need to do a return for Canada for 2010 even though I made no Canadian income that year and am claiming I am a US resident for tax purposes? Because I just filed as a US resident and only filed a US return, is there some form that I need to fill out for Canada to tell them I am filing as a US resident so they dont think im just not doing my taxes?


2011 tax year I will be filing again a 1040 as a US resident. But this year (2011 tax year) I withdrew what little I had invested into a Canadian RRSP ( I had stopped contributing in 2009) ( the total was about $7000 and taxes were deducted before I received the rest).

So my question is, do I need to file a Canadain return because of that RRSP I withdrew ( Canada kept some in taxes), or can I claim the taxes that were already taken as a tax credit on my US return? If I do that, do I still need to file a canadian return regardless?





Ive been trying to do my best to do my taxes myself, I just dont want to get into muddy water just because I wasnt aware of something so some guidance in the right direction is appreciated.

[nelsona]

you've got 2 issues

First, you can't simply decide you are non-resident and not tell CRA. In the year you leave, you need to file a regular Cdn retur for your provnce, declaring a departure date and paying any deemed departure tax. See CRA Emigrants guide.

You also needed to tell your Cdn financial delers that you were non-resident, so (a) they would know how to treat you, and (b) Now, when you took out money, they would withold the right tax.

So, for 2010, you need to file a departure return. You left in 2009, so I'm curious as to what date you will indicate on your 2010 departure.

for your RRSP, you need to make sure that exactly 25% tax was withheld. If it was more or less than this, you will have to, by letter, not a return, fix this with CRA.

On your US tax returm, asuming that you have been filing form 8891 since you arrived, you will report the withdrawl on that form, and determine the US-taxable portiion of your RRSP (I have dealt with this issue elesewhere -- happy browsing).
You can then use the 25% tax as either a deduction (only what was paid) or a credit on your US return.

[sdpuppies2883]

Great thank you! That info was what i was looking for. I knew I had to file some kind fo departure return for 2010 but I wasnt exactly sure.